Business

Sensex at three-year low

MUMBAI: The Bombay Stock Exchange sensitive index, Sensex, closed at three-year low of 8695.53 on Tuesday and sheds 207 points after failing to sustain the early gains amid weakness in the European markets and lower growth projections by the Plan panel. The Sensex closed at 8903.12 on Monday.

Markets had surged in the morning with the Sensex gaining over 270 points to breach the 9000-level again on strong cues from Asian bourses after a rally in the U.S. markets. However, it was a straight fall then as the European stock markets opened lower by 1-2 per cent.

The Planning Commission’s observations that economic growth would be lower at 7 per cent this fiscal against 9 per cent in 2007-08 dampened the sentiment.

Amidst reports of a likely a cut in fuel prices, the oil and gas sector index lost 3.86 per cent, the highest among all indices at 5409.37 with the segment major and Sensex heaviest, Reliance Industries dropping by Rs. 73.25, or 6.40 per cent, to Rs. 1,071.70. Aban Offshore fell by Rs. 52 to Rs. 707.65.

Capital goods index was the second worst performer by falling 2.56 per cent at 6386.68 as stocks of Larsen and Toubro, Siemens, Thermax, BHEL and Punj Lloyd suffered major losses.

Asian indices ended up by about 1.5 per cent to 5.5 per cent except Shanghai Composite which closed 0.44 per cent lower due to fears of a slowdown. After a promising start, the Bombay Stock Exchange sensitive index, sensex, fell on fag-end selling across counters barring consumer durables.

The rupee today dipped below 50-mark against the dollar by gaining 14 paise against the dollar on Tuesday against the close of 50.10 on Monday. At the interbank foreign exchange market, the rupee opened at 49.80 and moved in a range of 49.70 and 50.12. — PTI

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